Hong Kong Exchanges and Clearing Ltd. (HKEx, 00388.HK) will soon gather information and opinions from market participants with regard to the inclusion of fund settlement and holding functions on the exchange’s clearing platform.
The new functions are expected to be added to the clearing system as it is upgraded, the Hong Kong Economic Journal reported Wednesday.
The Securities and Futures Commission (SFC), the local market watchdog, has set up a task force to look into compliance issues, the report said, citing Salina Yan, deputy secretary for the Financial Services and the Treasury Bureau.
The SFC aims to finish its study by the end of this year as the government has given priority to the development of such functions to facilitate fund product sales and redemption on the exchange’s platform.
Discussions have been going on between SFC, HKEx and market participants regarding the issue but there no is timetable yet for the launch, according to Yan.
Authorities, meanwhile, plan some investor awareness programs through intermediaries and the Investor Education Centre.
Yan said it remains open to question whether the fund sales platform should also cover the secondary market, apart from primary transactions that involves subscription and redemption of fund products.
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